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HP 12C Platinum Solving for lease payments

Answer:

$321.72

Example 2: An individual is considering leasing a car that costs $26,995 today. The lease would be for 2 years with a

residual value of $14,000 for the vehicle at the end of that period. The agreement calls for the use of a 6%,

compounded monthly, interest rate. If monthly lease payments will be made, what is the size of the lease

payment required?

Solution:

To solve this leasing problem, the calculator will need to be in Begin mode. The solution below assumes

the HP12C Platinum calculator is not already in this mode. If the calculator is already in this mode, the

keystrokes of g×. shown below may be omitted. Remember to change the calculator back to End

mode before solving ordinary annuities again.

g×. 26995 $ 6 gC 2 gA 14000 ÞM P

Answer:

$642.73

Example 3: A company is considering leasing a machine that costs $24,505 today. The lease would be for 3 years with

a residual value of $11,000 for the machine at the end of that period. The agreement calls for the use of a

10%, compounded monthly, interest rate. If monthly lease payments will be made, what is the size of the

lease payment required?

Solution:

To solve this leasing problem, the calculator will need to be in Begin mode. The solution below assumes

the HP12C Platinum calculator is not already in this mode. If the calculator is already in this mode, the

keystrokes of g×. shown below may be omitted. Remember to change the calculator back to End

mode before solving ordinary annuities again.

g×. 24505 $ 10 gC 3 gA 11000 ÞM P

Answer:

$532.08

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HP 12C Platinum Solving for lease payments - Version 1.0